Primo Water — Primo Brands — Q1 2024 Earnings Presentation
20 slides from Primo Water's earnings presentation, May 9, 2024
Slide 1: Primo Water 1st Quarter 2024 Results
PRIMO WATER 1st QUARTER 2024 RESULTS May 9, 2024
Slide 2: Cautionary Statements
Cautionary Statements Safe Harbor Statement: This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and applicable Canadian securities laws conveying management's expectations as to the
Slide 3: Today's Presenters and Agenda
Q1 2024 Earnings Presentation Today’s Presenters Tom Harrington Tom Harrington Robbert Rietbroek David Hass CHIEF EXECUTIVE CHIEF EXECUTIVE CHIEFOFFICER EXECUTIVE CHIEF FINANCIAL OFFICER OFFICER OFFICER • Q1 2024 Financial Summary • Must Win Priorities AGENDA • Q1 2024 Reported Results • 2024 Financ
Slide 4: Q1 2024 Financial Summary
Q1 2024 Financial Summary Financial Performance for Continuing Operations (in millions) Continuing Operations Q1 2024 Q1 2023 Change Revenue $452.0 $412.5 9.6% Adj. EBITDA (1) $93.9 $75.6 24.2% Adj. EBITDA Margin % (1) 20.8% 18.3% 250 bps Q1 2024 Highlights • 9.6% revenue growth of 5.1% volume and 4
Slide 5: "Must Win" Priorities
"Must Win" Priorities Superior Customer Service • Organic customer base growth • Increase high impact customers • Enhance customer touch points Be the Partner of Choice • Deepening relationship with top-tier retailers • Increase presence, penetration, and volume • Create connectivity Operational Exc
Slide 6: Superior Customer Service
Superior Customer Service High Value Customer Focus Customer Experience Center • Acquiring and maintaining high value customers • Increased support coverage • Driving annual gallon growth • Embedded voice, chat, and social capabilities • Costco booth program • Customer centric - omnichannel approach
Slide 7: Preferred Water Solutions Partner
Preferred Water Solutions Partner Associates Retail Partnerships Investors • Focus on safety • Deepening relationship with retail • Participated in numerous investor • Workplace upgrades and improvements partners events and presentations • Positive shift in culture and engagement • Universal desire
Slide 8: Operational Excellence
Operational Excellence Operational Updates • Implementation of 6- and 7-day delivery schedules • Automatic Route Optimization 2.0 • Continued installation of high-efficiency production lines U.S. Water Direct & Exchange U.S. Water Direct & Exchange Units / Route / Day (1) Revenue / Route (000's) Yea
Slide 9: Q1 2024 Reported Results – Continuing Operations
Q1 2024 Reported Results – Continuing Operations For the Three Months Ended (in millions of U.S. dollars) March 30, 2024 April 1, 2023 $ Change % Change % Volume(1) % Price(1) Revenue, net Water Direct/Water Exchange $339.4 $312.4 $27.0 8.6% 2.6% 6.0% Water Refill/Water Filtration 58.0 52.2 5.8 11.1
Slide 10: Dispenser Sell-Through - Continuing Operations
Dispenser Sell-Through - Continuing Operations It All Starts with Dispenser Sell-Through Annual Sell-Through (1) Trailing Twelve Month Sell-Through (1) Tariff In Place • Sell-Through: The measurement of a dispenser sold to a customer (via retail or e-commerce) • Dispensers are sold today in ~11,200
Slide 11: 2024 Financial Outlook - Continuing Operations Only
2024 Financial Outlook - Continuing Operations Only Financial Outlook Q2 2024 Range (1) FY 2024 Range (1) ($ in millions) Low High Low High Revenue $472 $482 $1,855 $1,885 Adj. EBITDA $103 $111 $410 $430 Cash Taxes $30 $40 Cash Interest, Net (2) $30 $50 CAPEX (3) ~ 7% of Revenue + $22.5M Strategic I
Slide 12: Capital Allocation
Capital Allocation • Stable & recurring cash flow generation platform Organic Growth • Opportunities to fund growth via organic initiatives, acquisitions as well as capital projects to drive efficiencies Accretive M&A • Improve financial profile and returned excess capital to shareowners Capital Pro
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
APPENDIX 14 14
Slide 15: Continuing Operations Historical and Forecasted Financials
Continuing Operations Historical and Forecasted Financials Revenue (1) Adj. EBITDA (2) $48.4 $155.7 $1,644.8 $1,420.7 CAPEX Adj. Free Cash Flow (3) (1) Exclusions include the exit of single-use plastic retail business in North America and the exit of our business in Russia. (2) see appendix for full
Slide 16: 2023 EBITDA by Quarter - Continuing Operations
2023 EBITDA by Quarter - Continuing Operations Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Fiscal Year Ended December 30, 2023 First Quarter1 Second Quarter1 Third Quarter1 Fourth Quarter2 Total2 $ 412.5 $ 450.6 $ 470.0 $ 438.7 $ 1,771.8 Revenue, net Net income $ 3.2 $
Slide 17: Q1 EBITDA and Adjusted EBITDA - Combined
Q1 EBITDA and Adjusted EBITDA - Combined Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Three Months Ended March 30, 2024 April 1, 2023 Continuing Discontinued Combined Continuing Discontinued Combined Operations1 Operations2 Operations1 Operations2 $ 531.1 $ 546.5 Revenue
Slide 18: Organic Growth - Continuing Operations
Organic Growth - Continuing Operations Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Three Months Ended March 30, 2024 $ 39.5 9.6 % Revenue growth 1 5.5 1.3 % Less: Impact of acquisitions 2 $ 34.0 8.3 % Organic growth (1) Q1 2024 Press Release (2) Primo Water company info
Slide 19: Q1 Free Cash Flow and Adjusted Free Cash Flow - Combined
Q1 Free Cash Flow and Adjusted Free Cash Flow - Combined Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Three Months Ended March 30, 2024 April 1, 2023 Continuing Discontinued Combined Continuing Discontinued Combined Operations1 Operations2 Operations1 Operations2 Net cas
Slide 20: Interest Coverage Ratio and Net Leverage Ratio from Continuing Operations
Interest Coverage Ratio and Net Leverage Ratio from Continuing Operations Continuing Operations - Non-GAAP Reconciliation - Unaudited (-) (+) (in millions of U.S. dollars, except FY 2023 Q1 2023 Q1 2024 financial ratios) YTD YTD Q1 2024 LTM Adjusted EBITDA $ 380.7 $ (75.60) $ 93.9 $ 399.0 Interest E